ICYMI: Scout Motors and the Alliance for Automotive Innovation is urging the U.S. DOJ to eliminate state franchise laws. President Trump announced 30% tariffs on the European Union and Mexico. The U.S. Commerce Department will impose tariffs of up to 160% on Chinese graphite. GM’s Orion Assembly Plant will shift from EV manufacturing to building gas-powered vehicles by 2027. Tesla CEO Elon Musk has publicly stated that he does not support a merger between Tesla and his AI company, xAI.
Here’s a closer look at these top stories and more headlines to stay on top of this week’s automotive industry news.
Scout Motors, a Volkswagen Group subsidiary, is urging the U.S. Department of Justice to eliminate state motor vehicle franchise laws, describing them as “burdensome restrictions on competition.” In a letter submitted to the DOJ’s Anticompetitive Regulations Task Force, Scout’s Vice President of Government and Regulatory Affairs, Blair Anderson, argued that current franchise laws have evolved into protectionist barriers that block emerging direct-to-consumer business models. Read More
Trump announces 30% tariffs on EU, Mexico
President Donald Trump announced on Saturday that the United States will impose a 30% tariff on the European Union and Mexico starting Aug. 1. He revealed the new rates in letters addressed to the leaders of the respective countries, which he posted to his Truth Social profile. U.S. dealers could soon feel the ripple effects of heightened tariffs on vehicle imports and parts from two of the industry’s most critical trading partners. With both the EU and Mexico playing significant roles in automotive supply chains, these tariffs could raise costs, disrupt availability and create new volatility for franchise and independent retailers alike. Read More
The U.S. Commerce Department has issued preliminary anti-dumping duties of 93.5% on Chinese graphite imports, which, when combined with existing levies, increases the effective tariff to 160%. Graphite, a critical material used in the manufacture of lithium-ion battery anodes, is essential to electric vehicle production. The move stems from a complaint by American Active Anode Material Producers alleging that Chinese suppliers were undercutting U.S. manufacturers with unfair subsidies. The tariff could drastically increase costs for battery makers and EV manufacturers, including Tesla and Panasonic, who depend heavily on Chinese graphite due to its high quality and availability. Read More
General Motors (GM) will begin building the Cadillac Escalade, Chevrolet Silverado, and GMC Sierra light-duty pickups at its Orion Assembly plant in early 2027, abandoning its original plan to produce electric vehicles at the site. The shift comes despite GM accepting $480 million in state grant funds and investing $4 billion to expand the facility for EV manufacturing. Company officials cited slower-than-anticipated EV demand but confirmed battery module production will continue at Orion to support EV output at Factory Zero in Detroit and Hamtramck. Read More
Elon Musk clarified on social media that he does not support a merger between Tesla and his AI company, xAI, despite Tesla preparing a shareholder vote on whether to invest in xAI. Musk’s companies continue to move toward integration, with Tesla launching a software update that introduces the Grok AI chatbot, developed by xAI, into vehicles, though the AI cannot yet control car functions. The rollout follows recent controversies over Grok’s offensive outputs, which xAI apologized for and sought to fix. Read More
Next Week: Exclusive Interviews You Can’t Miss
As affordability concerns, policy shifts and consumer preferences evolve, dealers are working to adapt in real time. In today’s episode of Inside Automotive, Doug Eroh, president and GM of Longo Toyota and the president of Penske Motor Group, discusses his dealership’s sales performance and how his team is staying ahead in a shifting market.
The fixed operations department stands as a vital profit powerhouse for dealerships, making its success essential. In this upcoming episode of Service Drive, Shon Kingrey, VP of fixed operations at The Kayser Automotive Group, and John Fairchild, fixed ops coach and president of Fairchild Automotive Solutions, discuss the strategies that separate average service departments from top performers and explore how consistent coaching, transparency, and daily measurement systems contribute to greater accountability and lasting success.
As Apple rolls out its new AI-based call screening features, similar to, but more advanced than those already offered by Android and Google devices, sales teams may find it harder than ever to get their calls answered. However, in this upcoming episode of CBT Now, Matt Easton, sales trainer and founder of Easton University, asserts that this technology doesn’t have to be a roadblock. In fact, it can be a powerful tool for sellers who know how to utilize it effectively.